HEQ vs QQQ
John Hancock Hedged Equity & Income Fund vs Invesco QQQ Trust, Series 1
Quick Verdict
QQQ has a lower expense ratio. QQQ delivered stronger 1-year returns. HEQ offers more diversification with 640 holdings.
Side-by-Side Comparison
| Metric | HEQ | QQQ | Winner |
|---|---|---|---|
| Expense Ratio | 1.16% | 0.18% | |
| AUM | $146M | $496.3B | |
| Dividend Yield | 7.86% | 0.44% | |
| Holdings | 640 | 108 | |
| YTD Return | +14.83% | +16.64% | |
| 1Y Return | +21.96% | +27.27% | |
| 3Y Return (annualized) | +13.87% | +25.96% | |
| 5Y Return (annualized) | +7.16% | +14.54% | |
| Volatility (annualized) | 15.4% | 30.6% | |
| Max Drawdown | -59.7% | -83.0% | |
| Fund Family | John Hancock Investment Management | Invesco (US) | |
| Category | Equity | Equity | |
| Inception | May 26, 2011 | Mar 10, 1999 |
HEQ vs QQQ Performance
John Hancock Hedged Equity & Income Fund (HEQ) is a ETF from John Hancock Investment Management and Invesco QQQ Trust, Series 1 (QQQ) is a ETF from Invesco (US). Over the past year HEQ returned +21.96% while QQQ returned +27.27%. Year to date, HEQ is up 14.83% versus a gain of 16.64% for QQQ.
Over three years, HEQ compounded at +13.87% per year against +25.96% for QQQ; over five years the annualized figures are +7.16% and +14.54% respectively. Across the full 15-year window we track, QQQ has the edge at +13.03% annualized vs -0.05%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
QQQ has been the more volatile fund, with annualized monthly volatility of 30.6% compared with 15.4% for HEQ. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -59.7% for HEQ and -83.0% for QQQ. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at 0.62. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
HEQ charges 1.16% per year while QQQ charges 0.18%. On a $10,000 position that is $116 vs $18 annually, a gap of $98 per year that compounds over a long holding period. On income, HEQ currently yields 7.86% against 0.44% for QQQ.
Holdings Overlap
HEQ and QQQ share 22 holdings out of 503 unique holdings combined, representing a 6.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, HEQ or QQQ?
HEQ has an expense ratio of 1.16% while QQQ charges 0.18%. QQQ is the cheaper option. On a $10,000 investment, that is $98 per year of difference.
Which performed better, HEQ or QQQ?
Over the past year HEQ returned +21.96% vs +27.27% for QQQ, so QQQ leads on 1-year performance. Over the longest common window we track (15 years), HEQ annualized -0.05% vs +13.03% for QQQ. Past performance does not guarantee future results.
Which is riskier, HEQ or QQQ?
QQQ has been the more volatile fund at 30.6% annualized versus 15.4% for HEQ. Worst drawdown: HEQ -59.7% vs QQQ -83.0%.
Should I hold both HEQ and QQQ?
HEQ and QQQ have a monthly-return correlation of 0.62, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between HEQ and QQQ?
HEQ and QQQ share 22 common holdings with a 6.0% weight overlap. Combined, they hold 503 unique securities.
Which pays a higher dividend, HEQ or QQQ?
HEQ yields 7.86% while QQQ yields 0.44%, so HEQ currently pays the higher dividend yield.
Popular ETF Comparisons
Get Full ETF Analytics
Access complete holdings data, overlap analysis, screener tools, and more with FundXLS.